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Yahoo
an hour ago
- Business
- Yahoo
Penn State, UCLA Take Private Equity Funding Deal With Elevate
Penn State and UCLA have become the inaugural partners in Elevate's newly unveiled $500 million College Investment Initiative, according to three individuals familiar with the situation. Accordingly, the two Big Ten institutions have emerged as the first known universities to formally embrace private capital as a means of funding their athletic departments—signaling a significant milestone in the growing convergence of institutional capital and intercollegiate athletics. More from Elevate Opens $500M College Sports Fund With Texas PSF, Velocity College Sports Commission Gives off Nonprofit Web Impression Colleges Prep for Athlete Title IX Lawsuits of the Revenue-Share Era Elevate formally introduced its college sports fund on Monday, revealing that two universities had already committed, but withholding their names. The fund is backed by private equity firm Velocity Capital Management and the Texas Permanent School Fund, a special-purpose government corporation that supports the state's schools. In a telephone interview, Elevate chief business officer Jonathan Marks declined to confirm the schools, but said they would be announced in the coming weeks along with potentially others. Representatives from UCLA and Penn State did not immediately respond to requests for comment. While neither Big Ten institution had previously been considered a frontrunner in the movement toward private financing, their participation is hardly surprising. Both rank among the top 25 in athletic spending among FBS public universities, per Sportico's college sports finance database, yet neither enjoys the same financial stability as some of their high-spending peers. For UCLA, the embrace of private investment comes amid prolonged fiscal distress. Now competing in the Big Ten following the dissolution of the Pac-12, the Bruins' athletic department has grappled with persistent deficits. Recent NCAA filings show a nearly $52 million shortfall in fiscal year 2024—even after receiving a $30 million campus subsidy. Over the past six years, the program has accrued close to $220 million in debt tied to athletics, highlighting the urgent need for alternative revenue streams. At Penn State, a similar financial recalibration is underway. In February, the university introduced a slate of new fees—including additional charges on season and single-game tickets, parking and in-stadium purchases—to establish its 'Legacy Fund,' designed to support mounting athletic department expenses from scholarships to facility improvements. Following Judge Claudia Wilken's final approval of the House v. NCAA settlement last week, Penn State athletic director Pat Kraft wrote an open letter announcing the Nittany Lions' intention to spend the maximum of athlete revenue-sharing allowable (roughly $20.5 million in 2025-26). 'While change can be difficult, it also can provide new opportunities, and I assure you we will embrace every opportunity this new model creates,' Kraft wrote. Over the past three years, universities, athletic conferences and private investors have engaged in ongoing discussions as the college sports economy shifts toward a model that increasingly acknowledges and compensates its athlete workforce. In this evolving landscape, it is fair to assume that nearly every Power Four institution—along with a growing number of non-P4 schools—has at least explored the potential implications of incorporating private capital into their athletic operations. Florida State University emerged as a notable early mover, becoming the first known institution to actively pursue private investment in its athletic department. In 2022, FSU initiated discussions with private equity firms Sixth Street and Arctos Partners under an in initiative internally dubbed 'Project Osceola.' While the talks demonstrated significant initial interest and ambition, the effort has yet to yield a formal agreement. Nevertheless, the initiative served as a clear signal to the broader market: Intercollegiate athletics may be prepared to venture into heretofore uncharted territory to maintain competitiveness in an increasingly professionalized landscape. With the pace of that transformation accelerating, many anticipated a wave of deals—whether through private equity, private credit or alternative financing structures—would soon materialize. Yet to date, such transactions have remained largely theoretical. In May 2024, RedBird Capital and Weatherford Capital—co-founded by FSU trustee and former Seminoles quarterback Drew Weatherford—unveiled Collegiate Athletic Solutions (CAS), an investment platform designed to deploy between $50 million and $200 million into select major athletic departments. Despite the ambition and capital behind the fund, CAS has yet to finalize or publicly announce any completed partnerships. Some universities that initially appeared to be strong candidates for private equity investment—such as the University of North Carolina—were ultimately put off by Wall Street's expectation for immediate returns. 'We have been approached numerous times about different private equity options, but nothing was appealing enough for us to pursue any further,' UNC athletic director Bubba Cunningham told Sportico last August. 'The cost of capital for us is fairly low. They've got some good ideas and thoughts about some other uses of the capital, but we're not there yet.' The Big 12—arguably the most enthusiastic supporter of private capital among the conferences—recently came to a similar conclusion after a year-long evaluation process that reportedly included discussions with global investment firm CVC Capital. Meanwhile, the Big Ten, which was previously lukewarm on the idea, retained investment bank Evercore earlier this year to begin soliciting preliminary PE pitches. Best of Tennis Prize Money Tracker: Which Player Has Earned the Most in 2025? World's 50 Most Valuable Soccer Clubs 2025 Rankings NBA Playoff Games Really Are Different, Data Shows
Business Wire
7 hours ago
- Business
- Business Wire
Elevate Launches Collegiate Investment Initiative to Support Growth of Athletic Programs
NEW YORK--(BUSINESS WIRE)--Elevate, a leader in sports and entertainment strategy and investment, today announced the launch of its Collegiate Investment Initiative, in partnership with Velocity Capital Management ('Velocity') and the Texas Permanent School Fund Corporation ('Texas PSF'). This groundbreaking initiative reaffirms Elevate's long-standing commitment to college athletics and is designed to provide colleges and universities with capital and strategic resources to develop revenue-generating projects that deliver long-term, sustainable financial growth. The Collegiate Investment Initiative's uniqueness originates from Elevate's existing long-term comprehensive operating agreements with its university partners, and the capital provided simply expands the scope and scale of these partnerships. Proceeds will accelerate infrastructure enhancements, immediately generating incremental revenue growth through additional fan engagement, leading to improved financial performance. Public announcements on two agreed-upon transactions are expected soon. With the rapidly evolving landscape of collegiate athletics, including increased media rights opportunities, expanded playoff formats, and new avenues for fan engagement, Elevate's Collegiate Investment Initiative aims to position partner institutions for success in the next era of college sports. The investment strategy will prioritize key infrastructure and commercial projects, such as modernized venues, premium seating expansions, multimedia rights optimization, NIL platforms, digital innovation, and broader fan experience enhancements. By aligning capital with strategic consulting and operational execution, Elevate offers a holistic solution beyond financing, ensuring each project maximizes return and institutional impact. 'College athletics are at a critical inflection point, and institutions need partners who can bring both capital and strategic expertise to the table,' said Al Guido, Chairman and CEO of Elevate. 'With the Collegiate Investment Initiative, we're doubling down on our commitment to helping schools thrive not just today, but for decades to come.' Elevate has a proven track record of partnering with universities, conferences, and athletic departments nationwide, delivering transformational results that boost revenue, enhance brand equity, and improve the student-athlete and fan experience. The Collegiate Investment Initiative further solidifies Elevate's role as a trusted partner in shaping the future of college sports. 'This fund represents a major step forward in how we support our collegiate partners,' said Jonathan Marks, Chief Business Officer, College at Elevate. 'Universities are facing unprecedented challenges and opportunities in the new collegiate landscape. Our investment is more than capital, it's about empowering institutions to think bigger, move faster, and build lasting infrastructure that fuels growth for generations of student-athletes, fans, and communities.' 'We are excited to be the catalyst for Elevate to launch a new vertical that will further its mission to be a value-add strategic partner to its collegiate clients,' said Robert L. Borden, Chief Executive Officer and Chief Investment Officer, Texas Permanent School Fund Corporation. 'We are confident that the combination of Elevate's operating capabilities, Velocity's domain expertise and our capital will greatly benefit collegiate athletic programs during this unprecedented period of change and disruption. We will continue to seek ways to allocate additional capital and be a long-term permanent capital partner to Elevate and its clients as new opportunities arise.' David Abrams, Co-Founder and Managing Partner of Velocity, said, 'Elevate's initiative to invest capital to address the funding needs of colleges and universities is yet another example of how the Company is providing customized holistic solutions for its clients. We have witnessed the value that Elevate has generated for its collegiate clients and are thrilled to be part of an initiative that will definitively play a critical role in the transformation of college sports.' Colleges and universities interested in exploring partnership opportunities with the Collegiate Investment Fund are encouraged to contact Elevate directly. About Elevate Elevate is a global, integrated agency network committed to helping properties, brands, and universities forge deeper connections with their audiences to unlock growth. Serving more than 1,000 clients across sports, entertainment, consumer products, retail, and more, Elevate transforms followers into devoted fans. An agency rooted in innovation, Elevate leverages EPIC, its proprietary intelligence platform powered by advanced data and AI technology. EPIC integrates tools for consumer insights, ticketing, property analytics, and more, empowering clients to maximize ROI, enhance fan engagement, and craft campaigns that foster lasting loyalty. Founded in 2018, Elevate partners with clients worldwide from offices across North America, Europe, Asia, and Australia. For more information, visit us at About The Texas Permanent School Fund Corporation The Texas Permanent School Fund Corporation was created by Texas' first Constitution in 1845 as a perpetual fund to invest for the benefit of the state's public schools. Since that time, the Texas PSF has grown to comprise nearly $60 billion in assets and distributes nearly $2.2 billion annually to Texas K-12 schools. In 2021 the 87th Texas Legislature established the Texas Permanent School Fund Corporation as a stand-alone special-purpose governmental corporation. Founded in 2021, Velocity Capital Management is an operationally intensive middle-market private equity firm leveraging its influential capital and domain operating expertise to grow best-in-class businesses in the sports, media, and entertainment ecosystem. Velocity's leadership has nearly 90 years of institutional investment and C-suite and ownership experience throughout the firm's core investment verticals. Velocity has a strategic partnership with the Texas Permanent School Fund Corporation, a Texas-based Sovereign Wealth Fund with approximately $60.0 billion in assets. Velocity currently has investments in Elevate Sports Ventures, Unique Sports Group, Parella Motorsports, Videocites, X Games and Camp. For more information, please visit
